Consumer rights top of the agenda

9.00.00am GMT Mon 25th Jul 2005

Getting a better deal for consumers was top of the agenda when Consumer Minister Gerry Sutcliffe met with his front-bench counterparts and representatives from APACS this week.

The Minister was joined by Charles Hendry MP and Norman Lamb MP to talk about ways to ensure lenders give customers a fair deal.

They discussed what the industry is doing on self-regulation to address concerns that MPs have raised, these include:

• Unsolicited increases to credit card limits, APACS are looking at ways to ensure that all lenders covered by the Banking Code will adhere to the best practice guidelines to prevent increases being made to at-risk and vulnerable customers.

• Data sharing, APACS and other lender bodies are working with DCA and DTI to resolve this issue.

• Standard interest rate calculations: APACS will do more to ensure that consumers are aware of how interest rates are calculated and what they should look for when comparing credit products.

• Credit card cheques, the Government is committed to improving consumer understanding of credit card cheques and is in discussions with APACS and others on this issue, and APACS are considering further changes to the Banking Code.

Gerry Sutcliffe said "For many people access to credit is important and helps them manage their finances. I want to make sure that people get a fair and clear service from lenders so that credit does not become a burden to them.

"I am pleased that there is cross party support on the issues we need to address for consumers to get a better deal and I'm encouraged that APACS joined us to talk about these important areas.

"The Government is committed to creating a fair, clear and competitive consumer credit market with better consumer protection. The Consumer Credit Bill currently go through Parliament is an important step towards this goal."

Norman Lamb said "It is important that we all work together on this. Progress has been made, but there is still a long way to go. It is crucial that the industry responds to this challenge to ensure responsible lending."

The Minister, Mr Hendry and Mr Lamb will continue to meet with APACS and other industry groups to monitor progress on these issues.